SINGAPORE - The dollar slumped in Asian trading Monday, pressured by growing worries about the state of the US financial system after the collapse of US investment bank Lehman Brothers, dealers said.

Moves by the US Federal Reserve and a consortium of banks to open up fresh credit on Sunday appeared to have done little to calm investors' nerves, they said.

The dollar traded at 105.31 yen, down from 107.92 yen in late Friday trading, while the euro changed hands at 1.4324 dollars, up from 1.4229.

Markets in Japan were closed for a public holiday and will reopen Tuesday.

'This will be a volatile week... one where players will be thinking about managing risks more than taking risks,' analysts from Singapore's DBS bank said.

John Horner, a forex strategist at Deutsche Bank, had told Dow Jones Newswires the dollar was likely to remain under pressure overall as long as Lehman Brothers' survival was in doubt.

Lehman Brothers announced Monday its bankruptcy after the former Wall Street giant, scarred by the subprime mortgage meltdown, failed to find a buyer.

Another Wall Street giant Merrill Lynch, hit also by huge losses from the subprime mortgage meltdown, was forced to sell itself to Bank of America for 50 billion dollars.

The deal, which values Merrill Lynch at 29 dollars a share, was announced also on Monday.

Meanwhile, the Federal Reserve announced plans to make it easier to obtain fresh credit as markets braced for more turbulence in the global financial markets.

The Fed said it was easing collateral requirements for the firms as it acted 'to identify potential market vulnerabilities in the wake of an unwinding of a major financial institution.'

In a related action, a consortium of 10 global commercial and investment banks said it would provide 70 billion dollars to help offset a credit squeeze.

Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley, and UBS, said in a joint statement they 'initiated a series of actions to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets.'

Among Asian units, the dollar rose to 47.07 Philippine pesos from 47.02 on Friday but fell against other currencies.

The greenback fell to 1.4308 Singapore dollars from 1.4362 on Friday, to 1,106.75 from 1,108.85, to 9,462.5 Indonesia rupiah from 9,466, to 32.05 Taiwan dollars from 32.06 and to 34.55 Thai baht from 34.75.